Consumer Portfolio Services ( (CPSS) ) has released its Q4 earnings. Here is a breakdown of the information Consumer Portfolio Services presented to its investors.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories, primarily operating through franchised automobile dealerships and focusing on late model used vehicles.
In its latest earnings report, Consumer Portfolio Services announced a revenue of $105.3 million for the fourth quarter of 2024, marking a 14.5% increase compared to the same period in 2023. The company also reported a net income of $5.1 million for the quarter and $19.2 million for the full year 2024.
Key financial highlights include a record total portfolio balance of $3.491 billion and new contract purchases amounting to $1.682 billion for the year, reflecting a 24% growth in loan originations. Despite the increase in revenues, the company faced higher operating expenses, which impacted its pretax income, decreasing to $27.4 million for the year from $61.1 million in 2023.
The company experienced a slight increase in delinquencies and net charge-offs, with delinquencies over 30 days rising to 14.85% and annualized net charge-offs reaching 8.02% of the average portfolio. However, the CEO expressed optimism about the company’s future, citing positive trends in loan originations and operating efficiencies.
Looking ahead, Consumer Portfolio Services remains optimistic about its business prospects in 2025, driven by continued growth in loan originations and improvements in operational efficiencies, despite the challenges posed by rising delinquencies and operating expenses.